An Increase in Autonomous Consumer Expenditure Causes the Equilibrium Level

question 108

Multiple Choice

An increase in autonomous consumer expenditure causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________, everything else held constant.

• A) rise; MP; right
• B) rise; IS; right
• C) fall; MP; left
• D) fall; IS; left

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Definitions:

Prereproductive

Referring to organisms or life stages that have not yet reached the age or stage where they can reproduce.

Demographic Transition Model

A theoretical model that describes the stages a country goes through as it transitions from a non-industrial to an industrial economic system, influencing birth and death rates and overall population growth.

Death Rates

A measure of the number of deaths in a particular population, scaled to the size of that population, per unit of time.